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Free CMPE Practice Questions

10 free, exam-style Certified Medical Practice Executive (CMPE) practice questions with answers and explanations. No signup required. Work through them below, then take the full free CMPE practice test to study every exam domain.

Question 1

Over the past quarter a practice's claim denials have risen sharply, and nearly all are coded "service not authorized." To correct the root cause, the administrator should focus improvement efforts on which part of the revenue cycle?

  1. Payment posting and account reconciliation
  2. Front-end verification and prior authorization
  3. Charge capture and clinical documentation
  4. Back-end denial appeals and patient collections
Show answer & explanation

Correct answer: B - Front-end verification and prior authorization

Question 2

A practice administrator is comparing two federal laws. One imposes liability even when there was no intent to violate it; the other requires proof that a party knowingly intended to induce referrals. The strict-liability law that does NOT require proof of intent is:

  1. The Anti-Kickback Statute
  2. The False Claims Act
  3. The Stark Law
  4. The Civil Monetary Penalties Law
Show answer & explanation

Correct answer: C - The Stark Law

Question 3

A practice employs a salaried office manager who regularly exercises independent judgment over significant operational decisions. Under the Fair Labor Standards Act (FLSA), this employee is MOST likely classified as:

  1. Exempt, and therefore not entitled to overtime pay
  2. Non-exempt, and therefore entitled to overtime pay
  3. A non-exempt salaried employee
  4. An independent contractor
Show answer & explanation

Correct answer: A - Exempt, and therefore not entitled to overtime pay

Question 4

A practice's days in accounts receivable (A/R) has increased from 38 to 56 over two quarters, while patient volume and fee schedules have remained unchanged. This trend MOST likely indicates:

  1. The practice is collecting payments more efficiently
  2. A slowdown in the billing and collection process
  3. A reduction in the practice's total charges
  4. An improvement in payer reimbursement rates
Show answer & explanation

Correct answer: B - A slowdown in the billing and collection process

Question 5

A practice engages a consultant who sets her own schedule, uses her own equipment, serves multiple clients, and is not directed in how she performs the work. For tax-reporting purposes, the practice should MOST appropriately treat her as:

  1. A part-time employee reported on Form W-2
  2. An exempt employee under the FLSA
  3. A leased employee obtained through a staffing agency
  4. An independent contractor reported on Form 1099
Show answer & explanation

Correct answer: D - An independent contractor reported on Form 1099

Question 6

Under which payment model does a practice receive a fixed payment per enrolled patient per month, regardless of how many services that patient actually uses?

  1. Capitation
  2. Fee-for-service
  3. Bundled (episode-based) payment
  4. Shared savings
Show answer & explanation

Correct answer: A - Capitation

Question 7

Under the accrual basis of accounting, a practice recognizes revenue at the point when:

  1. The payment is deposited into the practice's bank account
  2. The insurance claim is submitted to the payer
  3. The service is performed for the patient
  4. The patient's outstanding balance reaches zero
Show answer & explanation

Correct answer: C - The service is performed for the patient

Question 8

A nonprofit community health center wants to offer employees a tax-advantaged retirement savings plan designed specifically for tax-exempt organizations. The MOST appropriate plan is a:

  1. 401(k) plan
  2. 403(b) plan
  3. Defined benefit pension plan
  4. Traditional profit-sharing plan
Show answer & explanation

Correct answer: B - 403(b) plan

Question 9

Several physicians want to form a new practice entity that shields their personal assets from business liabilities while allowing profits and losses to pass through directly to their individual tax returns. Which structure BEST meets BOTH goals?

  1. A general partnership among the physicians
  2. A sole proprietorship
  3. A C-corporation with an elected board
  4. A limited liability company (LLC)
Show answer & explanation

Correct answer: D - A limited liability company (LLC)

Question 10

An uninsured patient arrives at a practice's affiliated emergency department reporting severe chest pain. Under the Emergency Medical Treatment and Labor Act (EMTALA), the facility is required to:

  1. Perform a medical screening exam and stabilize the patient
  2. Transfer the patient to a public hospital before any treatment is given
  3. Confirm the patient's insurance and ability to pay before treating
  4. Refer the patient to an outpatient clinic for follow-up care
Show answer & explanation

Correct answer: A - Perform a medical screening exam and stabilize the patient

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